Chapter 1
Public Health Service Grants Management Procedures  TOP

Introduction

The Federal rules governing grants management for CARE Act service providers are provided in Office of Management and Budget (OMB) circulars and the Code of Federal Regulations (CFR). Title I grantees are expected to be familiar with these documents and assure that all service providers follow the procedures outlined in these documents.

The Grants Management Branch (GMB) of the Health Resources and Services Administration’s HIV/AIDS Bureau (HRSA/HAB) oversees grant awards to Title I eligible metropolitan areas (EMAs). As the counterpart to the business office of the grantee, GMB handles business management aspects of the review, negotiation, award, and administration of grants, as follows:

• Receiving all grant applications
• Monitoring the objective review process
• Performing cost analysis prior to grant award and negotiating changes in budgets as necessary
• Providing business management consultation and technical assistance
• Signing and issuing grant awards, amendments to awards, and notices of suspension and termination
• Receiving and responding to all correspondence related to business activities
• Receiving all documentation submitted for compliance with the terms and conditions of the grant award (progress reports, financial reports, revised budgets, and other conditions of award)
• Maintaining the official grant file
• Conducting continuous surveillance of the financial and management aspects of grants, and
• Resolving audit findings.

HAB/DSS Expectations  TOP

The Title I grantee is responsible for the proper stewardship of all grant funds and activities, even if those funds are divided among several political jurisdictions. This requires business management systems that meet the requirements outlined by recipients of Federal funding, as outlined in the OMB Circulars discussed below. Failure to comply with any of the conditions of award by the specified due date may result in the suspension of the grantee’s ability to draw down funds the disallowance of funds.

Administration of Grants  TOP

Title I grantees can find relevant information regarding the administration of grants in the following OMB Circulars (which can be obtained from OMB’s Office of Federal Financial Management, at (202) 395-3993, http://www.whitehouse.gov/omb/circulars or http://www.hhs.gov/grantsnet).

OMB Circular A-102 - Grants and Cooperative Agreements with State and Local Governments (codified by the U.S. Department of Health and Human Services [HHS] in 45 CFR Part 92), and

OMB Circular A-110 - Uniform Administrative Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations (codified by HHS in 45 CFR Part 74). A-110 applies to sub-awards and contracts made by State and local governments to organizations covered by this Circular.

They cover:

• Standards for financial management systems, including payments, program income, revision of budget and program plans, and non-Federal audits
• Purpose of property standards, including the purpose of insurance coverage, equipment, supplies, and other expendable property
• Purpose of procurement standards, including recipient responsibilities, codes of conduct, competition, procurement procedures, cost and price analysis, and procurement records
• Purpose of reports and records, including monitoring and reporting, program performance, financial reports, and retention and access requirements
• Purpose of termination and enforcement, and
• Purpose of closeout procedures.

Principles and Standards for Determining Costs  TOP

The following OMB resources establish principles and standards for determining costs applicable to grants, contracts, and other agreements entered into by the types of organizations specified:

OMB Circular A-122 - Cost Principles for Nonprofit Organizations
OMB Circular A-87 - Cost Principles for State, Local, and Indian Tribal Governments
OMB Circular A-21 - Cost Principles for Educational Institutions.

Government-wide Standards for Non-Federal Entities Expending Federal Awards  TOP

Government-wide policies and standards for non-Federal organization-wide audits of recipients of Federal awards are explained in:

OMB Circular A-133 - Audits of States, Local Governments, and Nonprofit Organizations.
Grantee and Provider Contract Requirements

According to 45 CFR Part 92, local government grantees may use their own procurement procedures for issuing contracts, following applicable State and local laws and regulations. However, these procedures must conform to applicable Federal law and the standards in Part 92.36, including:

• Written code of standards of conduct for employees involved in the award and administration of contracts   
• Procedures to avoid the purchase of unnecessary and duplicative items
• Making awards to responsible contractors
• Maintaining records to detail the history of a procurement
• Settlement of all contractual and administrative issues
• Protest procedures to handle and resolve disputes
• Providing for full and open competition, and
• Written selection procedures for procurement transactions.

A contract must contain clauses that are necessary to ensure requirements under the grant will be satisfied, since neither 45 CFR Parts 74 and 92 nor other documents are directly binding on a contractor.

Grantee and Provider Contract Requirements  TOP

According to 45 CFR Part 92, local government grantees may use their own procurement procedures for issuing contracts, following applicable State and local laws and regulations. However, these procedures must conform to applicable Federal law and the standards in Part 92.36, including:

• Written code of standards of conduct for employees involved in the award and administration of contracts
• Procedures to avoid the purchase of unnecessary and duplicative items
• Making awards to responsible contractors
  
• Maintaining records to detail the history of a procurement
• Settlement of all contractual and administrative issues
• Protest procedures to handle and resolve disputes
• Providing for full and open competition, and
• Written selection procedures for procurement transactions.

A contract must contain clauses that are necessary to ensure requirements under the grant will be satisfied, since neither 45 CFR Parts 74 and 92 nor other documents are directly binding on a contractor.

Additional Guidance  TOP

For additional guidance, Title I grantees may also use the Public Health Service (PHS) Grants Policy Statement, dated April 1, 1994. It compiles policies and reviews policy issues that have been raised in the past regarding the administration of grant awards. To view the PHS Grants Policy Statement visit http://www.hhs.gov/grantsnet/.

REFERENCES  TOP

OMB Circulars are available from the Office of Federal Financial Management, Office of Management and Budget, 725 17th Street NW, Washington, DC 20503; telephone
(202) 395-3993, http://www.whitehouse.gov/omb/ 

Hard copies of the PHS Grants Policy Statement (April 1, 1994) may be obtained at http://www.nih.gov/grants/policy/gps.